Wynn Resorts Ltd.
) reported third quarter 2012 adjusted earnings of $1.48 per
share, surpassing the Zacks Consensus Estimate of $1.33 as well
as prior-year earnings of $1.05. On a GAAP basis, earnings per
share were $1.11 versus $1.01 in the comparable quarter last
year. The better-than-expected results were driven by strong
gambling businesses in Las Vegas.
Net revenue was flat year over year at $1,298.5 million, missing
the Zacks Consensus Estimate of $1,311.0 million.
Net revenue at Wynn Macau was $910.5 million in the quarter, down
4.3% year over year, due to a decline in VIP table games.
The table games turnover in the VIP segment declined 12.1% from
the prior-year period to $27.6 billion. Though, VIP table games
win was 3.08% based on turnover, above the expected range of 2.7%
to 3.0% as well as the year-ago level of 2.95%.
However, table games in the mass market category jumped 8.3% to
$211.3 million. Moreover, the mass market table games win rate
was 30.8%, which was higher than the expected range of 28% to 30%
and year-earlier rate of 27.7%.
Average daily rate (ADR) at Wynn Macau was $307, 2.5% lower than
the $315 in the year-ago quarter. The property's occupancy level
was 94.2% up from 93.7% in the prior-year quarter. Combining both
the effects, revenue per available room (REVPAR) slipped 2.0%
year over year to $295.
Wynn Resorts currently comprises 492 tables (286 VIP tables, 196
mass market tables and 10 poker tables) and 891 slot machines in
Las Vegas Operations
Wynn Resorts' revenue from Las Vegas operations achieved an
upside of 11.8% year over year to $388.0 million as net casino
revenue surged 22.6% from the prior-year period to $155.6
million. However, gross non-casino revenue increased 5.3% year
over year to $280.1 million, buoyed by improved revenues from the
hotel, and food and beverage segments, offset somewhat by lower
retail and entertainment sales.
During the quarter, Wynn recorded a 1.4% year-over-year increment
in room revenues. Average daily rate (ADR) inched up 1.9% to
$244, but occupancy fell to 85.7% from 88.3%. Both the matrices
led to a decline of 1.2% in REVPAR.
At the end of the quarter, Wynn Resorts' total cash and
investments were $2.7 billion. Total debt outstanding was $5.8
The company announced a cash dividend of $8.00 during the quarter
which includes a $7.50 special dividend and 50 cents per share
quarterly dividend. Additionally, Wynn Resorts plans to double
its quarterly dividend to $1.00 from 50 cents in 2013.
Despite the weak operating results at Macau, the casino operator
was able to post profits above expectation, thanks to the strong
business at Las Vegas. Moreover, a special dividend in the
reported quarter and a boost in quarterly dividend for next year
encouraged investors further.
Wynn Resorts which competes with
Las Vegas Sands Corp.
MGM Resorts International
) currently retains a Zacks #3 Rank that translates into a
short-term Hold rating. We are maintaining our Neutral
recommendation on the stock over the long term.
LAS VEGAS SANDS (LVS): Free Stock Analysis
MGM RESORTS INT (MGM): Free Stock Analysis
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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